How do estimate the value of colorado inc per share

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Colorado Inc. is a privately held developer of advanced security systems based in Denver, CO. As part of your business development strategy, in late 2019, you initiated discussions with Colorado Inc's founder about the possibility of acquiring the business.

Estimate the value of Colorado Inc per share using a discounted FCF approach and the following data:

Debt: $30 Million
Excess Cash: $110 Million
Shares Outstanding: 50 Million
Expected FCF in 2020: $45 Million
Expected FCF in 2021: $50 Million
Future FCF growth rate beyond 2021: 5%
Weighted-average cost of capital: 9.4%

Problem 1: After identifying the value of Colorado Inc per share, explain at least 3 additional factors you would look to consider in the possibility of acquiring the business and why.

Reference no: EM132708375

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